186 THE CONTEMPORARY PACIFIC. SPRING 1991 20 percent be established within two During the year in review the FSM years and that Pohnpeians constitute continued to shore up its international 80 percent ofthe work force within image. Australia, the Republic of the seven years. In the meantime, two for­ Philippines, and the Peoples Republic eign labor bills were introduced in the of China have all established embassies national congress by three Pohnpeian in Pohnpei, joining the existing US senators, accompanied by a Chuukese embassy. Australia has given the FSM senator on one of the bills. These its first patrol boat to patrol FSM would have declared a moratorium on waters for illegal fishing. foreign labor in 1990 and set a quota of JOAN KING fifty workers from anyone nation. The foreign partners then pulled out of the deal, citing a negative "political climate KIRIBATI and business environment" in Pohnpei. Officials in Sokehs municipality were I-Kiribati celebrated the tenth anniver­ not happy with the decision, as the fac­ sary of independence on 12 July 1990 tory was to have been built in their new and took the opportunity to reflect on industrial park. what had been achieved under the lead­ Pohnpei has opted to put its main ership ofPresident Ieremia Tabai. It development efforts into two mam­ was a decade ofrelative political stabil­ moth fishery projects. On 19 April 1990 ity, negligible economic growth, the state borrowed $5.1 million under increased foreign aid, and a rate of the medium-term note program toward population increase of 2.3 percent per a $12-million project that includes the year. Outer island development purchase of four fishing boats and a remained the government's priority, fish-processing complex. The loan, andefforts to attract foreign invest­ secured against future compact reve­ ment met with mixed results. The pow­ nues, carries an interest rate of9.57 erful and resilient Kiribati culture was percent, and will fall due in October a source of strength and at times a 1995· problematic asset in national develop­ The second fishery project is a joint ment. venture between Pohnpei state, the With general elections due early in FSM's National Fisheries Corporation, 1991, the three by-elections held during and an Australian company, Toe, the first half of 1990 served to increase which is controlled by Theo Kailis, of the political fever. The November 1989 Kailis and France. Critics noted that resignation of Dr Harry Tong to return the deal involved the purchase of three to the medical profession necessitated a five-hundred-ton, twenty-year-old by-election in South Tarawa in mid­ purse seiners from the Australian part­ February 1990. This was won with a ner, and that the price of nearly $13 clear majority by Roniti Teiwaki, a for­ million seemed high. Nevertheless, the mer minister in the Tabai government three parties signed the agreement and ex-director of the University of the papers on 25 May 1990, establishing South Pacific Center in Tarawa. Ratin­ the joint venture company, the Caro­ tera Robata was elected MP for the line Fishing Corporation. island ofAranuka after the untimely POLITICAL REVIEW· MICRONESIA death of Minister ofWorks and Energy the government to strengthen its rela­ Ieruru Karotu, in mid-February. Then tions with the outer island electors. on 13 April 1990, the MP for Butaritari, New Zealand provided the necessary Tamuera Taniera, was lost at sea. The aid to convene the meeting. impending by-election in that constitu­ The Eriko political faction intensi­ ency will put yet another new face in fied its attack on the government with the national legislature, the House of allegations of serious mismanagement Assembly. and corruption by senior individuals in The House of Assembly appears to certain statutory bodies and govern­ be divided into three main political ment ministries. The allegations were groups: the ruling Kiribati National not substantiated, and two motions to Progressive group (KNP), the Eriko condemn the government for corrup­ group (previously called the Christian tion, introduced during the 1989 Democratic Party), and a group of budget session and in the May session, independent members. The last two were soundly defeated in subsequent groups have not yet produced coherent parliamentary divisions. The 1989-90 policy platforms to counteract those of parliamentary sessions were character­ the governing KNP. The question of ized more by personal vendettas who might succeed Tabai, who is con­ between Eriko and government mem­ stitutionally barred from running again bers, than by constructive debates on for president, will become clearer after important national issues. the 1991 elections. The crucial question Toward the end ofthe period under is whether the 1991 elections will be review, the new member for South contested along party lines or on a per­ Tarawa, Roniti Teiwaki, expressed sonal basis as in the past. doubt about the viability of the Aloha The emphasis on outer island devel­ project, which involves attempts by Air opment culminated in a two-week Tungaru to link Honolulu, Christmas national maroro (consultation) in early Island, Tarawa, and Suva using a June between the Ministry ofHome leased Aloha Airlines 737 aircraft. Dif­ Affairs and Decentralization and repre­ ferent forms of the project had been sentatives of all the island councils, tried unsuccessfully five times before, including the council presidents, between 1971 and 1986, with cata­ clerks, and the unimane (traditional strophic consequences for the Kiribati leaders). The maroro turned out to be treasury. Meanwhile, domestic air a replica of a typical parliamentary ses­ travelers complain of unreliable do­ sion, in which the ministry was bom­ mestic air services because of mainte­ barded by questions about copra nance problems with local aircraft. prices, project identification and imple­ Copra prices remained a hot issue, mentation, the role ofthe unimane in particularly in light ofcontinuing the local government system, appropri­ depressed world prices and a general ate representation for the indigenous election looming in 1991. The price had Tarawa landowners in the national leg­ been handsomely subsidized by the islature, and the possible extension of Copra Society's reserve fund and the the president's term of office. It was Stabex fund controlled by the govern­ seen in some circles as another ploy by ment. The Tabai government resisted 188 THE CONTEMPORARY PACIFIC. SPRING 1991 strong pressure to transfer control of adding to the Australian, British, and the Stabex fund to the Copra Society. New Zealand diplomatic presence in The government has been fairly suc­ Kiribati. Australia continued to pro­ cessful in developing small business vide a major source of developmental enterprises that make good use of assistance, and seven million dollars cheap labor and local resources. The worth ofAustralian aid is earmarked kamaimai project, which involves bot­ for causeway construction in the outer tling and marketing boiled toddy, is an islands. The Tabai government hoped attempt to diversify coconut produc­ to link all the islets of Tarawa Atoll by tion away from copra. Handicraft sales causeways before the end of its current received a major boost in late 1989 with term. The resettlement ofFanning and the half-day visit to Tarawa of a ship Washington islands in the Line Islands carrying more than a thousand Ameri­ has been made possible by the provi­ can tourists. The Bairiki-based cooper­ sion of New Zealand aid. There has ative society, the Nanotasi, has suc­ been some criticism of these resettle­ cessfully run a small garment operation ment schemes because of the lack of and shows potential for growth. A proper planning for essential services Small Business Center has been started and infrastructure. A loan was nego­ on Betio under the auspices ofthe Min­ tiated from the People's Republic of istry ofTrade, Industry and Labor to China to build a new House ofParlia­ provide sites and services for the estab­ ment, although critics argued that local lishment of small-scale industries. funds should have been committed Foreign investment has been slow to instead. set up sole or joint-venture business There is growing public conscious­ operations, with notable exceptions in ness of political issues in Kiribati, with the banking and telecommunication the majority of people listening to the sectors. The government has seen no evening broadcasts of the House of reason to alter its existing shareholding Assembly proceedings. The people arrangement with the Australian West­ look forward to the 1991 general elec­ pac Banking Corporation in the owner­ tions with particular interest, because ship and management of the Bank of of the crucial issue of political leader­ Kiribati. Overseas Telecommunica­ ship after the departure of President tions Corporation International of Ieremia Tabai. Australia seemed to have sealed its grip RONITI TEIWAKI as a major partner in the joint-venture arrangement with the government in the Kiribati Telecommunications Com­ NAURU pany. The Kiribati Supply Company has been incorporated to take over the The defeat of the Hammer DeRoburt Supply Division ofthe Ministry of government and a continued decline in Finance, but the new company is still the republic's prosperity were the main 100 percent government owned. developments in Nauru during the The People's Republic of China set year. up an office in Tarawa in mid-199°, DeRoburt, elected Nauru's first.